Markit Economics released its preliminary manufacturing purchasing managers' index (PMI) for the U.S. on Friday. The U.S. preliminary manufacturing purchasing managers' index (PMI) climbed to 54 in October from 53.1 in September, beating expectations for a decline to 52.8.

A reading above 50 indicates expansion in economic activity.

The increase was driven by a faster pace of expansion in output and new orders volumes.

"The positive start to the fourth quarter suggests the economy may be picking up speed again after slowing in the third quarter, for which the PMI surveys pointed to annualised GDP growth of 2.2%," Markit Chief Economist Chris Williamson.

"The faster growth of export sales is particularly good news and will help to alleviate fears that the US economy is being hurt by the stronger dollar and slower growth in China," he added.